Exclusive
Growing attachment
By Shi Zhiqin | chinawatch.cn | Updated: 2019-04-15 15:28

The "16+1" platform for cooperation between China and the 16 Central and Eastern European countries was launched in 2012. It is not only a beneficial complement to the China-European Union comprehensive strategic partnership but also a successful model for the Belt and Road Initiative in its regional cooperation. The scope and depth of China-CEE cooperation is growing steadily and this year is likely to be the last year in its present format as the platform is due to expand to 17+1 with the inclusion of Greece.

From the annual meeting to established mechanisms, activities and events, the 16+1 platform is now widely known to the public in CEE countries, which indicates the platform's strong vitality as well as its contribution to the development of the region.

There are 13 EU member states that have signed memorandums of understanding relating to the Belt and Road Initiative with China, 10 of which are CEE countries. Jointly building the Belt and Road has become a key part of relations between China and CEE countries.

In the past few years, trade volumes between China and the CEE countries have been increasing. But although CEE countries now account for one-fourth of the European population and area, their combined trade volumes to China only account for about one-tenth of those between China and the EU.

In 2018, trade volumes between China and CEE countries reached $82.4 billion, up 58 percent compared with $52.1 billion in 2012. With exports from CEE countries to China growing faster, showing a steady increase in the ratio of the EU's exports to China. This is a clear contribution to the balanced development of China-EU relations.

Based on the principle of achieving shared growth through discussion and collaboration, China and the CEE countries are trying to synergize the Belt and Road Initiative with the development strategies of individual countries.

For Hungary, there is the policy of "opening to the East"; while for Poland and Croatia, there's "cooperation on the three seas", as well as cooperation with EU's Danube Strategy.

So far, Chinese enterprises have completed the Stanari power plant in Bosnia and Herzegovina, the bridge across the Danube River at Belgrade and flood control facilities at Wroclaw in Poland. All these projects and their success are bringing benefits to those who are in need.

Tsinghua Nuctech, a high-tech company security inspection product manufacturer and security solutions supplier, has established a factory in Poland, and its products are sold to European countries.

This kind of model, where products are made in Europe but designed by China, is a new trend in China's cooperation with CEE countries. Except for some special core components and parts, most of the items are purchased in European countries or entrusted to local plants.

So, Tsinghua Nuctech is not only contributing to the Polish GDP, it has also boosted local employment since 90 percent of its technicians and staff are local.

The Smederevo Iron and Steel Plant in Serbia is another success story of capacity cooperation between China and CEE countries.

This plant with 5,000 employees and a century-year-old history, although a symbol of Serbian national pride, saw years of losses. And if it was closed down, 5,000 workers would be unemployed, resulting in another 15,000 people losing jobs in related sectors, a heavy blow to the old capital of Serbia which heavily depends on the plant.

At the request of the Serbian government, the Hebei Iron and Steel Group from Tangshan, Hebei province, took over the almost bankrupt plant in 2016. With technical improvements and internal reform, the plant made up the deficits and began to see profits within a year.

The Belt and Road Initiative has activated not only political trust and substantial economic cooperation between China and CEE countries, but also frequent interactions and exchanges between local governments and people.

Nowadays all kinds of local cooperation are becoming increasingly common as more Chinese local governments become allies or sister cities with their CEE counterparts. Also, direct flights between Chinese cities and CEE countries make traveling more convenient and faster.

China has a consistent policy toward the EU which aims at a united stable and prosperous Europe. It values the EU as a whole as well as its member states, but in the past, China put more of its efforts into western Europe while neglecting the eastern part.

Since the EU and China are in a comprehensive strategic partnership, the"16+1" has become a very useful complimentary component of this relationship.

CEE countries all have a great interest in close cooperation with China as they need Chinese capital and investment for their infrastructure. The 16+1 cooperative platform is thriving as it enters the eighth year of its existence. And the hope is that the China-EU relationship is moving onto a new stage under the framework of a comprehensive strategic partnership and the forthcoming enlarged 17+1 platform.

The author is a resident scholar at Carnegie-Tsinghua Center for Global Policy. 

The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.

All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.

The "16+1" platform for cooperation between China and the 16 Central and Eastern European countries was launched in 2012. It is not only a beneficial complement to the China-European Union comprehensive strategic partnership but also a successful model for the Belt and Road Initiative in its regional cooperation. The scope and depth of China-CEE cooperation is growing steadily and this year is likely to be the last year in its present format as the platform is due to expand to 17+1 with the inclusion of Greece.

From the annual meeting to established mechanisms, activities and events, the 16+1 platform is now widely known to the public in CEE countries, which indicates the platform's strong vitality as well as its contribution to the development of the region.

There are 13 EU member states that have signed memorandums of understanding relating to the Belt and Road Initiative with China, 10 of which are CEE countries. Jointly building the Belt and Road has become a key part of relations between China and CEE countries.

In the past few years, trade volumes between China and the CEE countries have been increasing. But although CEE countries now account for one-fourth of the European population and area, their combined trade volumes to China only account for about one-tenth of those between China and the EU.

In 2018, trade volumes between China and CEE countries reached $82.4 billion, up 58 percent compared with $52.1 billion in 2012. With exports from CEE countries to China growing faster, showing a steady increase in the ratio of the EU's exports to China. This is a clear contribution to the balanced development of China-EU relations.

Based on the principle of achieving shared growth through discussion and collaboration, China and the CEE countries are trying to synergize the Belt and Road Initiative with the development strategies of individual countries.

For Hungary, there is the policy of "opening to the East"; while for Poland and Croatia, there's "cooperation on the three seas", as well as cooperation with EU's Danube Strategy.

So far, Chinese enterprises have completed the Stanari power plant in Bosnia and Herzegovina, the bridge across the Danube River at Belgrade and flood control facilities at Wroclaw in Poland. All these projects and their success are bringing benefits to those who are in need.

Tsinghua Nuctech, a high-tech company security inspection product manufacturer and security solutions supplier, has established a factory in Poland, and its products are sold to European countries.

This kind of model, where products are made in Europe but designed by China, is a new trend in China's cooperation with CEE countries. Except for some special core components and parts, most of the items are purchased in European countries or entrusted to local plants.

So, Tsinghua Nuctech is not only contributing to the Polish GDP, it has also boosted local employment since 90 percent of its technicians and staff are local.

The Smederevo Iron and Steel Plant in Serbia is another success story of capacity cooperation between China and CEE countries.

This plant with 5,000 employees and a century-year-old history, although a symbol of Serbian national pride, saw years of losses. And if it was closed down, 5,000 workers would be unemployed, resulting in another 15,000 people losing jobs in related sectors, a heavy blow to the old capital of Serbia which heavily depends on the plant.

At the request of the Serbian government, the Hebei Iron and Steel Group from Tangshan, Hebei province, took over the almost bankrupt plant in 2016. With technical improvements and internal reform, the plant made up the deficits and began to see profits within a year.

The Belt and Road Initiative has activated not only political trust and substantial economic cooperation between China and CEE countries, but also frequent interactions and exchanges between local governments and people.

Nowadays all kinds of local cooperation are becoming increasingly common as more Chinese local governments become allies or sister cities with their CEE counterparts. Also, direct flights between Chinese cities and CEE countries make traveling more convenient and faster.

China has a consistent policy toward the EU which aims at a united stable and prosperous Europe. It values the EU as a whole as well as its member states, but in the past, China put more of its efforts into western Europe while neglecting the eastern part.

Since the EU and China are in a comprehensive strategic partnership, the"16+1" has become a very useful complimentary component of this relationship.

CEE countries all have a great interest in close cooperation with China as they need Chinese capital and investment for their infrastructure. The 16+1 cooperative platform is thriving as it enters the eighth year of its existence. And the hope is that the China-EU relationship is moving onto a new stage under the framework of a comprehensive strategic partnership and the forthcoming enlarged 17+1 platform.

The author is a resident scholar at Carnegie-Tsinghua Center for Global Policy. 

The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.

All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.